Written Answers. - Old Age Pension.
Tony Gregory
Question:
218
Mr. Gregory
asked the
Minister for Social Welfare
if he will meet a deputation from the Self-Employed Pension Association (details supplied); the plans, if any, he has to amend the current rules for qualifying for contributory old age pension which limit those qualifying to persons under 56 years in 1988.
[3463/97]
Rory O'Hanlon
Question:
223
Dr. O'Hanlon
asked the
Minister for Social Welfare
if he will change the condition for receipt of old age pension by self-employed people who paid contributions from 6 April 1988, including persons who will have paid 52 weeks contributions each year for ten years when they will reach 66 years between 1 and 6 April 1998; and if he will make a statement on the matter.
[3592/97]
It is proposed to take Questions Nos. 218 and 223 together.
To qualify for the old age contributory pension, a person must, inter alia, have entered insurance at least ten years before pension age. This condition has been a feature of the scheme since its introduction in 1961. The purpose of the condition is to link entitlement to a pension with a reasonable level of contributions to the social insurance fund during the course of a person's career. This condition applies to all insured people.
Accordingly, self-employed people who became insured for the first time when social insurance was extended to the self employed in 1988 and who were then aged 56 or over would not qualify for the old age contributory pension. They are, of course covered for widow's, widower's and orphan's pensions. However, self-employed people in that age group, who had been insured as employed contributors for any period prior to age 56, could qualify for the old age contributory pension, subject to the normal qualifying criteria, as such insurance can be combined with insurance as a self-employed contributor for old age pension purposes.
Detailed consideration has been given by my Department to the possibility of providing for entitlement to the old age contributory pension to persons who entered insurance for the first time as self-employed contributors less than ten years before pension age. In this regard however the cost of any proposals has proved to be prohibitive.
I have no plans to relax the requirement that a person must have entered insurance for the first time at least ten years before pension age.
At present a self-employed person who entered social insurance for the first time in April 1988 when social insurance for the self-employed was introduced qualifies for a refund of the pensions element of their class S social insurance contributions, provided, of course, that they do not qualify for an old age contributory or non-contributory pension. In my recent budget speech I announced that this would be extended to the self-employed who were over age 56 on 6 April 1988, but who had also paid social insurance contributions between 1953 and 1988, subject to the same conditions. Up to now their earlier contributions would have prohibited them from receiving such a refund.
I would also point out to the Deputies that in my budget speech I announced details of the extension ofpro rata pensions from November of this year to persons with a yearly average of between ten and 19 contributions. At present a minimum yearly average of 20 is required. Persons with an average of between 15 and 19 will receive a pension of 75 per cent of the maximum rate, while those with an average of between ten and 14 will receive a pension of 50 per cent of the maximum rate. To qualify a person will also need to have a minimum of 260 paid contributions. Adult and child dependant allowances will be payable at the full rate. These pensions should enable some self-employed contributors who were over 56 in 1988 but who had previous social insurance contributions to qualify for a pro rata pension.
I am making arrangements for officials from my Department to meet a deputation from the Self-Employed Pension Association to outline this position.
